Additional comments from Australian Labor Party Senators

Introduction

1.1Labor senators are grateful for the opportunity this inquiry has provided for the Committee to examine the humanitarian situation in Myanmar.

1.2Along with other members of the Committee, we acknowledge and lament the coup d'état of 2021 that resulted in the deposition of a democratically-elected government by a military regime.

1.3As the majority report articulates, since coming to power the military regime has brutally set back Myanmar’s development and democracy. The United Nations reports that thousands of people in Myanmar have died at the hands of the military regime, with many thousands more being subject to arbitrary arrest and imprisonment.

1.4In addition to the direct violence perpetrated by the military regime against the people of Myanmar, the coup d'état has also served only to worsen the economic circumstances of the country— circumstances which were already poor. This has led to a situation where millions struggle to access life's essentials: food, water and shelter, to say nothing for primary health and education services.

Context

1.5Labor senators note the Australian Government’s condemnation of the Myanmar military regime’s brutal assault on political opposition and civil society groups, and support the sanctions measures it has imposed on the regime and associated entities.

1.6Despite the difficult operating environment, Labor senators acknowledge the Australian Government's commitment to the provision of meaningful assistance to those in need throughout Myanmar. Evidence provided by the Department of Foreign Affairs and Trade (DFAT) shows that Myanmar is Australia's fourth largest recipient of aid after Papua New Guinea, Indonesia and the SolomonIslands. In 2021/22, this amounted to approximately AUD$90.7 million, with budget estimates forecasting this to grow to AUD$120.6 million in 2022/23.

1.7We welcome the Australian Government's decision in the most recent budget to provide additional assistance to Myanmar and agree with the principle put forward in the majority report that this assistance must be prioritised to those in the greatest need, wherever they might be in-country.

1.8We also agree that the upmost care should be taken to ensure that Australia does not provide direct financial support to the military regime or its associated entities and recognise the diligent work undertaken by DFAT to ensure this does not occur.

1.9Australians, whose tax dollars make up this assistance, are right to expect that it is dispensed throughout the world with the highest degree of diligence and propriety. It is important that to achieve this end, rigorous processes are put in place to ensure every dollar of Australian assistance provided abroad is received by its intended recipient and for its intended purpose.

Concerns

1.10Labor senators are concerned by recommendations one, two and three. As noted in the submission from the Australian Council for International Development Myanmar Community of Practice, DFAT has exhibited a ‘high degree of flexibility in the use of ANCP funds to support work in Myanmar since the 2021 coup.’ It is our view that DFAT should continue to engage closely with stakeholders to maintain the existing flexible and consultative approach in the delivery of the Australian NGO Cooperation Program (ANCP) and other funds. However, we do not believe this necessitates the development of an alternative due diligence framework, which has the potential to decrease the level of oversight and therefore increase the risk to Australian development funds.

1.11Labor senators are also concerned with the Committee’s assertion in paragraph 3.7 that the current due diligence framework ‘prevents aid from reaching those most in need.’ As DFAT officials noted in evidence, Australia’s development program reaches every state in Myanmar, including a number of dangerous and volatile areas within the country. Australia’s aid program should continue to maximise development outcomes while ensuring there is appropriate oversight of the use of Australian development assistance. We encourage DFAT to maintain an active approach to monitoring Australian assistance to ensure that assistance continues to reach those most in need and to regularly review its delivery partners to ensure that Australia’s aid is delivered effectively and efficiently.

1.12Labor senators are troubled by the prospect of the proposed application of a new due diligence framework for Myanmar and the precedent this would set for lowering due diligence standards in many cases where the rigour of our existing approach is warranted and essential. For example, this could apply in any conflict setting where DFAT is responding today, such Gaza, Sudan or Syria. We are concerned by the potential for far-reaching consequences for Australia’s aid delivery if our due diligence framework is weakened depending on the operating context.

1.13Labor senators note recommendation four and encourage DFAT to consider how the new Civil Society Partnerships previously announced by the Australian Government could apply to Myanmar.

Conclusion

1.14Labor senators would like to thank those who provided submissions to the Committee's inquiry as well as those who attended the Committee's hearing in Canberra on 16 November 2023.

1.15It is clear that all those who participated in the inquiry did so out of genuine desire to contribute to alleviating the humanitarian crisis in Myanmar.

1.16Labor senators do not agree with recommendations one, two and three of the majority report that Australia's robust due diligence processes should be weakened in order to facilitate the provision of assistance to delivery partners who would otherwise not meet the requirements to receive such funding. Labor senators note recommendation four and welcome the Australian Government providing further detail in due course with respect to its International Development Policy and how this will improve the delivery of Australian assistance abroad, including in Myanmar.

1.17As stated above, we believe that the provision of Australian assistance to those in need abroad must be underpinned by rigorous processes to ensure it is received by its intended recipient and for its intended purpose.

1.18DFAT's due diligence framework exists to ensure that delivery partners have the appropriate mechanisms in place manage the effective provision of Australian assistance, fraud and corruption risks and the safety risks involved in operating in a conflict zone.

1.19In the case of Myanmar, where circumstances mean that it is even more difficult to monitor activities of delivery partners in-country, processes such as the due diligence framework become even more important in ensuring systematic and thorough assessments of potential delivery partners and their ability to act in accordance with the expectations of Australians in dispensing assistance abroad in their name.

1.20A robust due diligence framework is critically important to ensure that Australian taxpayers’ money is spent appropriately. We encourage DFAT to continue to its engagement with delivery and implementation partners to ensure that Australian assistance is well-spent and continues to reach those most in need.

Senator Raff Ciccone

Deputy Chair

Labor Senator for Victoria